Even 4.5-5% GDP growth in FY'14 to be good for India: KPMG

SummaryEconomic growth slumped to 5 per cent in 2012-13 and 4.4 per cent during first quarter 2013-14.

Achieving GDP growth of even 4.5 -5 per cent in the 2013-14 fiscal "should be good" for India as there has been a gradual slowdown in the country's economic activity, a top official of consulting firm KPMG said today.

"Initially, the government was talking of much higher growth. We have gradually come down to now below 5 per cent. My own estimate is that if we are able to even sustain 4.5-5 per cent, between there, it should be good," Akhil Bansal, Chief Operating Office, KPMG India told PTI at an event.

He said, however, that the government needs to improve the country's infrastructure to promote growth.

India's economic growth had slumped to decade low of 5 per cent in 2012-13, and during the first quarter of 2013-14 it slowed down further to 4.4 per cent.

Earlier, speaking on 'Practice of Strategic Consulting in India: Opportunities and Challenges', Bansal said strategic consulting industry in the country is expected to grow at over 20 per cent in the current fiscal.

"Consulting is still in nascent stage in India... Strategic consulting is required. I do not see any reason why it should not grow by another 20 per cent plus this year as well," he said.

He said about 70-80 good consulting firms are operating in India, but it (industry) is still pretty small.

"The estimated market size in India is about USD 300 million, which is very small. But the good thing is the way it is growing. Last year the growth was at about 22 per cent in strategic consulting and it came in an year when the economy was slowing."